The cost of fuel for power generation has decreased 19.2 percent year-over-year (YoY) to an average of Rs. 9.32/KWh, compared to an average cost of Rs. 11.54/KWh last year, while electricity prices have risen to a record high in Pakistan in the first seven months of 2023 (7MCY23).
In 7MCY23, the nation’s power production decreased by 8.5 percent YoY to 75,861 gigawatts per hour (GWh), whereas it increased by 4.9 percent YoY in July compared to the same month in the previous year.
While the cost of production based on imported Iranian fuel increased by 30.3 percent YoY during the reviewed period, solar generation increased by 36.9 percent YoY in 7MCY23.
Power generation increased by 8.2 percent month-over-month (MoM) to 14,839 GWh in July from 13,715 GWh in June, according to data from Arif Habib Limited (AHL).
Hydel (37.2 percent), RLNG (19.7 percent), coal (14.7 percent), and nuclear (14.2 percent) were the main contributors in July 2023.
Hydel power generation increased from 4,977 GWh in July 2022 to 5,518 GWh in July 2023, an increase of 10.9 percent YoY. Hydel generation is up 33.5 percent month over month. It is up 9.2% YoY for the January–July CY23 period.
When compared to the same month last year, RLNG-based power generation increased by 37.7% YoY to 2,918 GWh in July 2023. It also increased by 14.7 percent MoM to 2,544 GWh in June 2023.
In July 2023, coal-based power generation increased by 21% YoY to 2,180 GWh from 1,802 GWh the previous year. When compared to June, when coal-based power output was 2,434 GWh, July’s output fell by 10.5 percent MoM.
From 2,010 GWh in July of last year, nuclear power generation increased by 4.8 percent year over year to 2,107 GWh in July of this year. Monthly nuclear power generation increased by 13.5 percent from 1,857 GWh recorded in the preceding month.
Fuel Prices
The average cost of fuel for power generation in July 2023 was Rs. 8.34/kWh, down from Rs. 10.71 in July 2022 and Rs. 9.63 in June 2023, respectively, by 22.1 percent YoY and 13.4 percent MoM. Fuel prices for 7MCY23 are 19.2% lower YoY, averaging Rs. 9.32/kWh as opposed to Rs. 11.54/kWh in 7MCY22.
In 7MCY23, the cost of production based on fuel imported from Iran rose by 30.3 percent YoY to Rs. 24.04 per unit. RFO was the most expensive fuel during the review period, costing Rs. 26.13 per unit.
